CJ Logistics will accelerate its overseas expansion in the second half of the year while shifting its focus from scale-driven growth to sustainable profitability, the South Korean logistics major said on Sunday.
At a town hall meeting held Thursday at the company’s headquarters in Seoul, CEO Shin Young-soo reviewed the company’s first-half performance and outlined priorities for the remainder of the year.
Shin said parcel volumes and fulfillment sales increased by double digits in the first half despite challenging business conditions. The company also improved productivity and cost competitiveness through greater operational efficiency.
However, operating profit came under pressure from external factors, including the war in the Middle East. Shin said converting revenue growth into stronger earnings would be a key priority for the second half.
“Now is the time to improve the quality of growth, beyond simply expanding our scale,” Shin said. “Achieving results in global markets is essential to our next stage of growth.”
In South Korea, CJ Logistics plans to increase shipment volumes by integrating its parcel delivery, fulfillment and digital middle-mile services, while continuing to improve operational efficiency.
Overseas, the company is reallocating resources towards businesses with stronger growth and profit potential. It recently exited a non-core maritime transportation operation in Vietnam to focus on contract logistics.
CJ Logistics also plans to expand its network and customer base in strategic markets, including the United States and India, while exploring further investment opportunities.
By connecting its global freight-forwarding operations with local contract logistics services, the company aims to strengthen its end-to-end capabilities across transportation, warehousing and outbound delivery. The strategy is intended to help the company capture higher-value logistics opportunities while improving the profitability of its international operations.
During the meeting, CJ Logistics also recognised four teams and three employees for their contributions to business performance and competitiveness.
The FT Division’s Operations Branch 16 received the top team award for developing customised logistics services and successfully relocating a logistics site. An India-based unit under Global Business Division 2 was recognised for expanding contracts, while a global sales employee received the top individual award for securing an integrated logistics deal in the bio industry.